For the average aging individual or married couple, nursing home costs and the expense of long-term care are a huge shock and can wipe out their entire life savings within just months. In fact, many people are completely not aware that Medi-Cal and private supplement insurance does not cover the cost of long term care. Furthermore, in limited circumstances Medi-Cal will cover 100% of just the first 20 days and then part of the next 80 days. But after 100 days, Medi-Cal won’t cover anything and usually a private supplement policy won’t either. In reality you only get a few weeks of coverage between both. Scary thought right?

Over 40% of people getting close to 65 will need to spend time in a nursing home at some point. And the average monthly cost is steadily rising and is around $6k/month now.

So what are your options when faced with the potential of a long term care crisis?

One. Pay the costs out of private funds. This option is great if you’re independently wealthy or have wealthy family to help you out, if not, this is just not going to work.

Two. Purchase long term health care insurance. Purchasing long term care health insurance is becoming more popular as people realize the debilitating costs of full-service long-term care. So if you can afford it, make sure you use a reputable company and buy at least 5 years of in-home, assisted living and nursing home coverage at a minimum of $150 per day with the cost of living rider.

Three. Apply for and qualify for public benefits including Veterans and Medi-Cal benefits. Medi-Cal will pay for minimal in-home care and assisted living and can also be very complicated and stressful to apply for. Here’s why. There are certain assets that are counted against you when applying for Medi-Cal so having an attorney review your assets and decide how to treat them will help your chances of keeping your hard-earned possessions as well as qualify for the benefits you need now. These items may include your home, car, whole life insurance, household furnishings, cash at hand, bonds, savings, stocks, retirement accounts, etc. Some of these items may need to be transferred to someone else or used up in order to qualify for your benefits.

But the rules have changed! Congress passed legislation that majorly affects Medi-Cal Nursing Home benefits. This new law imposes new restrictions on the ability of the elderly to transfer their assets before qualifying for coverage.

Some of the Provisions Include:

• The look back period is extended from 3 to 5 years.
• The value of a house that can be exempt is $500,000.
• Annuities and many other planning tools will be eliminated.
• Monthly gifts are severely curtailed.

We strongly encourage adult child caretakers and seniors to readjust your long-term care planning or start planning now. Pre-planning is more critical than ever to maximize the possibility of saving your family’s assets and getting the senior the quality long-term care coverage they will likely need. Contact us today for a free consultation with one of our skilled Elder Law attorneys. Call 562-627-9600